Tag Archives: gas

Kazmunaigas confirms deal with ENI

JUNE 27 2017 (The Bulletin) — Kazakh state oil and gas company Kazmunaigas confirmed a deal with ENI that will transfer a 50% stake in the Isatay block in the Caspian Sea to Italy’s ENI. Under the deal the two companies will jointly explore the Isatay block for exploitable oil and gas reserves. ENI has been playing a lead role in developing the Kashagan offshore oil project in the Kazakh sector of the Caspian Sea.

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(News report from Issue No. 335, published on July 3 2017)

Uzbekneftgaz wants new branding

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JUNE 21 2017 (The Bulletin) — Perhaps embracing the country’s new era of openness, Uzbekistan’s state-owned oil and gas company Uzbekneftegas plans to throw off its Soviet-style branding. The company, which runs the Uzbek energy sector, has said that it wants a new logo and a new slogan that can be translated into Uzbek, Russian and English.

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(News report from Issue No. 334, published on June 26 2017)

Kazakhstan halves Karachaganak cost expansion

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JUNE 16 2017 (The Bulletin) — Kazakh officials said that the cost of extending production at the Karachagank gas condensate field had halved. Murat Zhurebekov, chief executive of PSA LLC, a unit of state energy firm Kazmunaigas, said that the cost of boosting production at Karachagank had halved from an earlier estimate of $9b. He didn’t explain why this estimate had been reduced, although he did say that it was linked to low oil prices. Eni and Royal Dutch Shell each own 29.25% of Karachaganak. Kazmunaigas owns 10%, Chevron 18% and Lukoil 13.5%.

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(News report from Issue No. 333, published on June 19 2017)

Azerbaijan plans to close Shah-Deniz

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JUNE 8 2017 (The Bulletin) — Azerbaijan plans to close gas production for a month at the Shah Deniz offshore in August to fix a faulty export pipe, Azerbaijan’s deputy energy minister Mariam Valishvili told Reuters in an interview. Shah Deniz is operated by BP, although it has not commented on Ms Valishili’s comments. It exports its gas via a pipeline that runs through Georgia and Turkey. Shah Deniz 1 has been producing gas since 2006. Shah Deniz II is due to come onstream by the end of 2019 and form the basis of a new flow of gas to Europe from the Caspian Sea.

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(News report from Issue No. 332, published on June 12 2017)

Kazakhstan discouts CPC crude at loss

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JUNE 8 2017 (The Bulletin) — Light CPC crude oil is being sold at an increasingly heavy discount because the Kashagan project needs to increase output despite low oil prices, various traders told Reuters. In the article, the traders said that it was simply cheaper for Kazakhstan to discount CPC crude than cut back on Kashagan output which only came onstream last year after a series of setbacks. Traders said that CPC crude, considered high quality, had been sold at a premium of $0.15/barrel in 2013. In the 2014-16 downturn this dropped to a discount of $0.11-$0.18 but was now being sold at a discount of $1.23 because of the oversupply.

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(News report from Issue No. 332, published on June 12 2017)

Turkmen gas supplies to China rise

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MAY 31 2017 (The Bulletin) — Turkmenistan will increase gas sales to China, its main client, by nearly 10% this year, the CEO of Turkmengas, Myrat Archayev, was quoted by media as saying. Turkmenistan currently pumps 35b cubic metres of gas to China. This will rise to 38b cubic metres. Mr Archayev said gas supplies to Iran would remain at 7b cubic metres despite a row over unpaid bills.

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(News report from Issue No. 331, published on June 5 2017)

Turkmenistan and Uzbekistan plan to develop oil and gas fields

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MAY 20 2017 (The Conway Bulletin) — In yet another sign of improving Turkmenistan-Uzbekistan relations, the countries’ state-run energy companies pledged to jointly develop Caspian Sea oil and gas fields. It’s unclear if this deal has a practical bent to it or if it is designed simply to be an eye- catching bilateral deal.

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(News report from Issue No. 330, published on May 28 2017)

Turkmenistan touts new gas field discovery

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MAY 6 2017 (The Conway Bulletin) — In a boost for its ambitions to become the region’s top gas exporter, Turkmenistan said that it had discovered a potentially large gas field near the Caspian Sea.

New gas field finds, especially of the size touted by Turkmenistan, are rare and the announcement created excitement in the oil and gas sector.

“According to the preliminary estimates, the well’s productivity is 500,000 cubic meters of natural gas and 150 tonnes of gas condensate per day, which confirms the huge hydrocarbon potential of the coastal zone and the shallow waters of the Caspian Sea,” the state-owned news agency Turkmenistan Today said of the discovery at the Uzunada area.

“Increasing hydrocarbon production is one of the priorities of the domestic fuel and energy complex.”

Turkmenistan’s economy is heavily skewed towards gas exports, mainly from the Galkynysh field, the second largest in the world, in the east of the country. A pipeline from the field feeds gas directly to China and a new pipeline is being built that will pump gas to Pakistan and India.

Turkmen President Kurbanguly Berdymukhamedov has talked of diversifying the Turkmen economy towards fertilizer and electricity production, but gas still dominates. The fall in gas prices has hit it hard and even forced a rare admission of economic weakness, with a cut to the manat currency in 2015.

If the new field was commercially exploited and did manage to produce at the rate of 500,000 cubic metres of gas per day claimed by Turkmenistan, it would add significant capacity to the country’s overall production. The Galkynysh field produces gas at around 1.7m – 2m cubic metres per day.

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(News report from Issue No. 328, published on May 12 2017)

Iran says it is ready to sue Turkmenistan over gas cuts

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MAY 8 2017 (The Conway Bulletin) — Iranian officials said they were ready to sue Turkmenistan in an international arbitration court for cutting gas supplies this winter, ramping up tension between the neighbours.

The announcement highlights just how far relations between Iran and Turkmenistan have splintered since Turkmen officials said last year that Iran hadn’t paid a $1.8b bill for gas delivered in 2007 and 2008.

In a statement quoted by Iranian media, Hamid Reza Araqi, managing director of the National Iranian Gas Company (NIGC), said Turkmenistan had failed its commitments.

“The price of gas, the damage they inflicted on Iran in winter by cutting off gas supplies, and the quality of gas delivered to Iran are three cases claimed by Iran,” he was quoted as saying. “Iran’s documents are ready to be submitted to the International Court of Arbitration.”

To some extent the row shows the strain an economic downturn has put countries and their leaders under. Before Turkmen officials accused Iran of reneging on bills, relations had been improving every month. As well as gas supplies Turkmen electricity was being imported, political links had been strengthened and there was talk of Iran providing Turkmenistan with access to the Persian Gulf through a swap system.

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(News report from Issue No. 328, published on May 12 2017)

UzGazOil workers complain about salaries

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MAY 3 2017 (The Conway Bulletin) — Employees at Uzbekistan’s state- owned UzGasOil network of petrol stations have not been paid their salaries, the Radio Free Europe/Radio Liberty website reported. It said that in a rare show of worker defiance in Uzbekistan, the UzGasOil employees had complained directly to the management about their unpaid salaries. RFE/RL quoted one worker saying that he was owed about $125 for two months work. RFE/RL contacted UzGasOil, rebranded from Uzbekneftegaz this year, who denied that there was a problem. In Uzbekistan, protests by workers against company management are virtually unheard of.

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(News report from Issue No. 327, published on May 5 2017)